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Drawing is a type of
Withdrawal of capital
None of the above
Withdrawals are payments from an owner’s share in a company. In other words, its money the owner took out of the company to use for personal expenses. Partnerships and sole proprietorships traditionally these transactions withdrawals whereas corporations usually refer to them as distributions.Drawing is a type of Withdrawal of capital. An owner's drawing affects the capital account of a balance sheet, whereas a withdrawal has no such effect.
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